Is It A Good Idea To Buy A Two-Wheeler On EMIs?

buy bike on emi without interest

Two-wheelers are among the most widely used modes of transportation in the country. Their low weight, quickness, and capacity to help riders move swiftly between areas attract everyone. You can buy bike on emi without interest if you don’t have enough money. Or maybe you don’t want to use your savings. Apply for a loan to get your dream two-wheeler easily. Several NBFCs in India offer this loan category.

A two-wheeler loan is an immense help because it allows you to purchase your ideal bike whenever you desire. There are several compelling reasons to buy a two-wheeler on EMIs:

  • Tax and depreciation benefits- You can use a variety of perks whether you’re a professional or a self-employed person. You are eligible to get a rebate of interest paid on the loan amount when you file your income tax return. You can get this benefit as a professional under tax deductions. You are eligible for this rebate if you have an active vehicle loan. You may buy the car under the name of your business if you are self-employed. This enables you to cut costs and receive discounts on expenses besides loan EMIs. These discounts include insurance, fuel, and maintenance costs. Some of these costs may qualify for depreciation benefits and lower your tax obligation.
  • It is safe and affordable- The Reserve Bank of India governs all lending companies in India and ensures their safety, security, and transparency for borrowers. All fees and EMI payment schedules are fully disclosed before the loan is accepted. You can select a flexible payment plan that ranges from 12 to 36 months. Additionally, you might obtain the funds at a lower interest rate if your credit score is good.
  • Get closer to your goals while not compromising- You might not be able to afford the bike or scooter you want right now. No one enjoys waiting in this circumstance. The lending institution may be a helpful buddy by providing an EMI option to fulfil your dream. You can pick a payment schedule that works for you, and your savings won’t be much affected since tax advantages are involved.
  • Cash is used for unforeseen circumstances and crises- Emergencies happen without warning. You can at least keep your stress level under control when they occur if you have the required money. You are ensuring that you do not use your emergency savings by financing the purchase of a bike. This is a wise course of action and will be very beneficial during emergencies.
  • Low-interest rates- Customers benefit from competition. There are always excellent offers available as interest rates become more competitive. Pick a lender that offers prompt service, immediate money disbursement, and transparent fees.
  • Invest the money to generate better returns- Opportunity cost is significant when you pay for a high-priced item out of your pocket. Things you could have done with the same capital if you hadn’t spent it to make the purchase are opportunity costs. For instance, the total cost to buy a bike is Rs. 1.5 lakh. Your account will be immediately depleted of Rs. 1.5 lakh if you pay the whole amount. You won’t even receive interest from your savings account. Instead, you can put down Rs. 30,000 and borrow Rs. 1.2 lakh at an interest rate of 11.5% for a year. This way, you’ll have to pay almost Rs. 1.28 lakh in EMIs at the end of the year. This indicates that you have approximately Rs. 1.2 lakh free and available for investment. You may be able to recover much more than 15% if you invest wisely. Some assets have yearly returns of considerably over 15%. You can invest the cash and maximize the funds while riding the brand-new bike.
  • Improves spending and saving habits- You make plans to repay the lender when you borrow money from them. Financial self-discipline is important in planning your spending because it helps balance your savings. It enables you to make loan payments on schedule and makes plans for various circumstances. It lets you control major life expenses like a child’s schooling, marriage, vacation, retirement, etc.
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By Hammad Hassan

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